Nvidia CEO wants TSMC to boost chip supplies amid strong AI demand

Nvidia CEO Jensen Huang requested additional chip supplies from Taiwan Semiconductor Manufacturing Company (TSMC), citing robust and accelerating demand for artificial intelligence, while also noting increased AI memory chip capacity from SK Hynix, Samsung, and Micron. This strong demand signal for Nvidia's products and the broader AI sector, coupled with TSMC's anticipated continued record sales momentum, provides a counter-narrative to Nvidia's recent ~7% stock decline amidst bearish market sentiment.

Analysis

Nvidia CEO Jensen Huang's request for increased chip supplies from Taiwan Semiconductor Manufacturing Company (TSMC) underscores robust and accelerating demand for artificial intelligence. Huang explicitly stated that Nvidia's business is "very strong" and "growing month by month, stronger and stronger," indicating sustained momentum in the AI sector. This demand is further supported by SK Hynix, Samsung, and Micron Technology adding "tremendous capacity" for AI memory chips.

TSMC CEO C.C. Wei corroborated this positive outlook, projecting continued record sales momentum annually, reinforcing the strong partnership with Nvidia. This bullish operational guidance from both key players provides a counter-narrative to Nvidia's recent ~7% stock decline this week, which was partly attributed to bearish bets from Scion Asset Management. The underlying business fundamentals appear robust despite short-term market fluctuations.

The deep collaboration, highlighted by Huang calling Nvidia and TSMC "forever partners" and his fourth visit to Taiwan in 2025, signifies critical supply chain stability for high-performance AI chips. This strategic alignment between a leading AI chip designer and the world's most advanced foundry is crucial for scaling AI infrastructure. The strong demand signals suggest continued revenue growth potential for Nvidia and its key suppliers.

Key Decisions for Investors

• Investors should closely monitor Nvidia's upcoming earnings calls for confirmation of sustained AI demand and supply chain execution, particularly given recent stock volatility.
• Consider the long-term implications of the strong partnership between Nvidia and TSMC, as this collaboration is critical for scaling AI infrastructure and maintaining market leadership.
• Evaluate the capacity expansion efforts by memory chip suppliers like SK Hynix, Samsung, and Micron as a leading indicator of continued AI sector growth and potential investment opportunities within the broader AI supply chain.